Litecoin (LTC) founder is optimistic about spot ETF approval

Litecoin received a major boost last week when asset management platform Canary Capital filed for the listing of a spot Litecoin exchange-traded fund.

Now Litecoin founder Charlie Lee says he believes the US Securities and Exchange Commission will give a greenlight for the spot Litecoin ETF. Lee shared his latest optimistic view of the LTC cryptocurrency in comments to Fox Business.

“I’m excited to see the Litecoin ETF filing by Canary Capital. We are definitely seeing a lot of institutional demand for Litecoin.

This is clear from the daily growth of the Grayscale Litecoin Trust with a price that is over twice the NAV. Given that Litecoin is a commodity that is very similar to Bitcoin, I hope to see the Litecoin ETF approved very soon,” the Litecoin founder said.

Fox Business journalist Eleanor Terrett shared Lee’s remarks via a post on X on Oct. 21.

Canary Capital Litecoin ETF

Charlie Lee’s comments come a few days after Canary Capital Group, founded by former Valkyrie co-founder Steven McClurg, submitted its Form S-1 for the Canary Litecoin ETF on Oct. 15. It is the first such filing for an LTC ETF.

Earlier, Canary filed for an ETF pegged on XRP. This means there are several filings targeting approval for spot ETFs for three major coins.

SEC has only approved spot crypto ETFs for Bitcoin and Ethereum.

However, there are applications for XRP and Solana, with Canary Capital’s LTC application the latest for a different cryptocurrency.

Before the approvals in January that saw 11 spot BTC ETFs go live in the US, the regulator had stalled the process and rejected several applications.

Nonetheless, the approvals opened up for spot Ethereum ETFs that went live on markets in July following a SEC nod in May.

However, while the community is upbeat about a potential nod for additional ETFs, experts say this is unlikely to be anytime soon given SEC’s handling of such applications.

A change in administration come November’s US election – if Donald Trump wins – will likely present a different regulatory approach and buoy chances of swift approvals.

Litecoin price outlook

The price of Litecoin jumped last week as news of the ETF filing hit the market. Having traded near $66, LTC pushed to above $72. Upside momentum continued as Bitcoin price led the market higher over the weekend, with Litecoin hitting highs near $76 on Oct. 20.

Santiment explained what else pushed Litcoin price higher last week: on-chain transactions and retail interest.

📈 Litecoin is enjoying a nice mini run, jumping above $73 for the first time since July. This is its first mid-sized breakout from Bitcoin and altcoins since the spring. Two major factors are:⚡️ LTC’s continued rise of on-chain transaction volume, which has nearly crossed $4B…

Latest retreat in the market has the altcoin trading near $71, down 4.7% in the past 24 hours at the time of writing.

Lee shocked the crypto world when he revealed he had sold all of his Litecoin holdings in December 2017.

At the time, Litecoin price had surged to highs above $360 amid the bull market. The coin’s current value is about 82% off the all-time high above $410 reached in May 2021.